Toyota's Financials Hit By Earthquake

by Bertel Schmitt

Published: August 2nd, 2011

Toyota today announced financial results for the quarter ended June 30, 2011. It was the first full quarter after the March 11 earthquake and tsunami which severely affected production and sales at home and abroad. The results reflect this.

On a consolidated basis, net revenues for the first quarter were 3,441 billion yen ($44.4 billion), down 29.4 percent from the same period last fiscal year. Operating income plummeted from 211.6 billion yen ($ 2.73 billion) to a loss of 108.0 billion yen ($1.4 billion). There is a before tax loss of 80.5 billion yen ($ 1 billion). Net income attributable to Toyota Motor Corporation decreased from 190.4 billion yen ($ 2.5 billion) to just 1.1 billion yen ($ 14 million.)

Consolidated vehicle sales for the first quarter totaled 1.22 million units, a decrease of 599,000 units compared to the same period in the prior year.

#BertelSchmitt #Earthquake #Financials #Japan #Toyota

Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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7 comments

Jjster6 on Aug 02, 2011

Ouch!!!

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NormSV650 on Aug 02, 2011

Toyota sells 19 models and make 12 here. So they were selling them everywhere but here? From Detroit Free Press: "Toyota sold 22% fewer vehicles worldwide during the quarter, but sales in North America tumbled 47.5% to 276,000 cars and trucks." Do we have a tsunami here too?

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- Aristurtle on Aug 02, 2011
  
  It doesn't matter where the cars are screwed together if they all use ECUs that all use one chip that only gets made at one factory that got hit.
  
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- Alluster on Aug 02, 2011
  
  “Toyota sold 22% fewer vehicles worldwide during the quarter, but sales in North America tumbled 47.5% to 276,000 cars and trucks.” The 276,000 figure for North America seems wrong. In the US alone Toyota sold more than 300K for the quarter. Include Canada and Mexico, its def. more. Not sure how they got that number. Excluded Lexus maybe?
  
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- Bertel Schmitt on Aug 02, 2011
  
  @alluster Toyota press release: "In North America, vehicle sales totaled 276 thousand units, a decrease of 250 thousand units compared to the same period last fiscal year." That's for the quarter.
  
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- Charly on Aug 02, 2011
  
  @alluster Maybe Toyota means cars sold to dealerships.
  
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Alluster on Aug 02, 2011

It is pretty impressive that Toyota managed to stay in the black considering the hit they took in the last few months. Toyota should recover well in the second half given how much pent up demand exists in Japan and North America for their cars. First half sales at 3.01 Million seem pretty far off from VW(4M+) and GM(4.7M+), but Toyota will def. recover faster and close the gap in the second half. A strong Toyota is what keeps Ford and GM competitive.

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